Note 14 - Federal and State Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Schedule of Federal and state income tax expense

	2021		2020		2019
	(dollars in thousands)
Current	$	7,290	$	27,237	$	8,255
Deferred		15,272		(14,530)		6,364
	$	22,562	$	12,707	$	14,619

Reconciliation of the expected federal income tax expense

	Year Ended December 31,
	2021				2020				2019
			% of				% of				% of
			Pretax				Pretax				Pretax
	Amount		Income		Amount		Income		Amount		Income
	(dollars in thousands)
Computed "expected" tax expense	$	25,508	21.0	%	$	15,391	21.0	%	$	15,126	21.0	%
Tax exempt income, net		(7,537)	(6.2)			(5,943)	(8.1)			(4,470)	(6.2)
Bank-owned life insurance		(386)	(0.3)			(308)	(0.4)			(360)	(0.5)
State income taxes, net of federal benefit, current year		5,089	4.2			3,622	4.9			3,668	5.1
Change in unrecognized tax benefits		578	0.5			546	0.7			(93)	(0.1)
Goodwill impairment		—	—			105	0.1			630	0.9
Intended liquidation of bank-owned life insurance		—	—			—	—			790	1.1
Tax credits		34	—			(456)	(0.6)			(705)	(1.0)
Acquisition costs		95	0.1			—	—			—	—
Excess tax benefit on stock options exercised and restricted stock awards vested		(436)	(0.4)			(242)	(0.3)			(287)	(0.4)
Re-measurement of deferred tax asset to incorporate newly enacted tax rates		—	—			207	0.3			—	—
Other		(383)	(0.3)			(215)	(0.3)			320	0.4
Federal and state income tax expense	$	22,562	18.6	%	$	12,707	17.3	%	$	14,619	20.3	%

Schedule of Unrecognized tax benefits

	2021		2020
	(dollars in thousands)
Balance, beginning	$	1,893	$	1,254
Impact of tax positions taken during current year		1,326		787
Gross increase (decrease) related to tax positions of prior years		(646)		39
Reduction as a result of a lapse of the applicable statute of limitations		(391)		(187)
Balance, ending	$	2,182	$	1,893

Schedule of Deferred Tax Assets and Liabilities

	2021		2020
	(dollars in thousands)
Deferred tax assets:
Historic tax credits	$	68	$	68
Compensation		11,912		10,288
Loan/lease losses		19,023		20,016
Net operating loss carryforwards, federal and state		1,354		628
Premises and equipment		—		16,509
Other		17		71
		32,374		47,580
Deferred tax liabilities:
Net unrealized gains on securities available for sale and derivative instruments		747		869
Premises and equipment		6,099		—
Equipment financing leases		6,462		13,373
Acquisition fair value adjustments		3,269		3,351
Investment accretion		27		28
Deferred loan origination fees, net		1,403		197
Other		677		922
		18,684		18,740
Net deferred tax assets	$	13,690	$	28,840

Change in deferred income taxes

	2021		2020		2019
	(dollars in thousands)
Provision for income taxes	$	15,272	$	(14,530)	$	6,364
Net deferred tax asset resulting from market value adjustments of acquisitions		—		—		(381)
Net deferred tax assets resulting from sale of other subsidiary		—		363		—
Net deferred tax liabilities resulting from sale of bank subsidiary		—		—		(1,644)
Statement of stockholders' equity- Other comprehensive income (loss)		(122)		837		1,433
	$	15,150	$	(13,330)	$	5,772